OIL FALLS HIT AUSTRALIAN STOCKS AGAIN: Here's What You Need To Know

An oil well outside Williston, North Dakota. Andrew Burton/Getty Images

The continuing fall in global oil prices smashed the Australian market again before it recovered about half the losses later in the day.

On Wall Street, the S&P/ASX 500 closed down 1.64% after OPEC lowered its projection for oil demand in 2015. The price of oil has been sliding since June when Brent crude was $US115 a barrel. Today it’s $US66.

On the Australian market, the ASX fell 1.2% with stocks down across the board. But by mid session the Australia market had staged a recovery, clawing back half the losses.

The energy sector lost 2.60% in value. The miners also suffered with BHP down 1.33% to $29.00, and Rio Tinto weaker by 2.4% to $55.04.

2. Gas and oil producer Santos is cutting its 2015 capital expenditure plans by $700 million to $2 billion following the substantial fall in oil prices.

3. Integrated energy company Origin has extended and increased its loans to $7.4 billion from $6.6 billion. Origin, Australia’s largest energy retailer, generates about 13% of the nation’s electricity and has interests in natural gas and coal seam gas. Its shares closed down 2.3% to $10.56.

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